DUI is risky behavior and causes death. This is what the insurance companies see when you apply for life insurance coverage and you have a DUI on your record.
For life insurance, your health and lifestyle factor heavily in determining what rates you are offered. A DUI is seen as a red flag in many senses. First, the insurance companies take it as a sign that a you could have a substance abuse problem which would definitely affect their calculations. Secondly, risky behavior and bad decision making will give them reason to classify you as high risk.
“The mortality rate for people who have been convicted of DWI is higher than those who have not, all else being equal,” reports Mike Vaughan, associate vice president of life insurance at Nationwide.
Will my application for life insurance be denied?
So here is what will happen:
If the DUI is recent or if you have multiple offenses, most carriers will deny coverage to you outright.If the offense was a few years go but less than five years, most carriers will deny applicants their preferred rates. The “look back” period varies between carriers but most adopt a five year or ten year period.
How much more will I pay?
According to research by Nerd Wallet:
Expect to pay up to $7.50 more for every $1,000 of coverage, either temporarily or for the life of the policy, according to Jason Fisher, owner of Waterway Financial Group in Myrtle Beach, South Carolina. For a $250,000 term life insurance policy, that’s up to $1,875 more a year.
What if I don’t tell them?
Don’t! Insurance companies check motor vehicle records and criminal records so they will find out. Lying to them could open up another legal issue.
What should I do?
Each case is different so you would want to consult with an experienced insurance agent who has access to a number of companies. They will be able to help you navigate the complexities of the issue.
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